At 01:04 PM 3/15/2001 -0800, Ken North wrote:
>I'm confused because you've consistently taken a position that XML and
>XML-based technologies have not delivered on promises. However, the example
>below from Cisco was reported in November 2000 issue of eCompany. Even for
>Cisco, one would assume $175 million is not a trivial savings.
No. My position has consistently been regarding XML in exchanging business
objects (transactions) between companies. Not all XML usage by a long
shot. Just re-read my email that you are answering and you will see my
comments.
Now there are a few things you need to know about this $175 million ROI
claim. When my manager and I first heard this some months ago it sounded
entirely fishy to us since we know of all the XML/EDI projects at Cisco and
all of that is still way in its infancy. Here's some facts:
1. Our manufacturing started their first XML RosettaNet trading with a
partner some time last year and is still at just one trading partner on
XML. They do have six other trading partners exchanging data on their eHub
project using not XML but um, er,.... (shame) flat files. But to upgrade
to XML in the future. Hundreds of XML partners are expected by the end of
two years.
2. another department is sending RosettaNet XML with one partner and also
set up some Ariba with some partners. That was five months ago with no new
partners yet in production.
3. I found out yesterday that the referenced comment had to do ONLY with an
internal messaging system for the sales team that was done in XML. Not
XML/EDI with outside partners. One might think, well that is a small point
really, internal vs. external. No, that is the whole point. On an internal
system the developers have total control of the format and can design and
control the whole direction of the project, message formats, etc. Formats
for external communications are an entirely different matter as I have
repeatedly discussed in this forum.
I do not know where the mis-communication occurred that suggested that all
this large amounts of external XML trading with many trading partners was
already in place at Cisco. I can only assure you that it is not yet the case.
4. Is the $175 million number accurate? How much is PFA (Pulled From Air)
or fudge factor? who knows? No one I talk to has any certainty on that
number. Look, Cisco is empowering the internet generation. You have to
promote your wares. Oracle is currently taking legal flak because of their
ads claim that their own Oracle applications used in house saved them a
billion dollars. Looks like that was likely some major PFA (Editor's Note:
if you say "pfa" as a word slowly, it makes the same sound as a small
silent fart. If you don't believe me, try it yourself! :))
5. Actually, the $175 million number might be very accurate. Doing any
great streamlined project for sales that improves their ability to sell can
be worth millions. An internal messaging system that gives correct real
time data to sales is a gold mine. But does that justify thinking that
BECAUSE we used XML, that XML is now saving us $175M/year? Or was it
because we built the messaging system and it fits the right needs of Sales?
Let's say we built a brand new inventory system and we project it to save
$10 million per year. We build it in Java or C++ and it does save us
$10M/year, would it then be accurate to say "Java (or C++) is saving us
$10M/year? No, we say this cool new inventory system we designed and built
saved us the money. Unless it is the first few years of Java's existence
and you are Sun Micro, why yes, then you say "Java did it". Get it? It is
marketing.
6. On the plus side, the statement does give a good proof of concept for
XML used our in internal messaging and this is a good thing.
I hope this sheds some light.
Steve
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